Foundational Principles of Fairway Research

And what our logo represents.

Principle: a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.

This is a set of foundational principles to help Fairway Research publish reports which are useful to our readers.

1. We cannot predict the broader market movement. Neither do we believe anyone else can.

2. We believe that market prices of companies, over the long term, fluctuate around their intrinsic value.

3. We can estimate the intrinsic value of businesses which we understand, or which can we can understand with reasonable effort.

4. Intrinsic value of a company is best estimated using a detailed discounted cash flow methodology.

5. Our focus is on estimating the expected future cash flows with a reasonable level of confidence rather than fine tuning, adjusting and refining our discount rates.

6. There is no substitute to doing the hard work of reading company filings and related documents. That is the only path to an informed opinion which is useful to the reader.

7. Strive to be useful by delivering the best return per reading time to our readers.

   

You might also be wondering what the Fairway Research logo represents. It is inspired by the books written by Ryan Holiday and Willian Irvine. It depicts the four cardinal stoic virtues: 1. Wisdom – identifying good, bad, indifferent. 2. Temperance – self-discipline, self-awareness, social decorum. 3. Justice – righteousness, kindness, fairness. 4. Courage – fortitude in facing fears.